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If China's economy tanks, does California's soar?

EconoMeter weighs the relative impact of a Chinese downturn


Wednesday, January 13, 2016

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Kelly Cunningham, National University System
Answer: NO

There is not much upside for California from China’s economy slowing. China is California’s largest trading partner and significant businesses in the state are heavily invested there. California imports far more from China than we export. The trade imbalance will further increase as China’s economy slows and their currency depreciates against the dollar. California consumers may somewhat benefit with the stronger dollar lowering costs of imports, but on balance more negative consequences result than positive.